Mortgage: Dafaulting or not ???

Loris13

Hi there, just to post my situation as some of you might be in the same circumstances and maybe a bit more advanced on the Process.
I bought a house about 5 years ago, right at the top, indeed before the big fall! Currently about 80k negative equity....my ex partner left the house few months ago and since then, she's refusing to pay the mortgage.
I've been able to make the repayments so far, but living with very little money and not even considering a holiday or some additional expenses outside of monthly repayments, bills, etc...etc.

The mortgage is on both names (me and my ex), we've explored any possibility....remove one of the name from the mortgage (bank denied). Selling the house (no point), renting...etc.etc

The only option at this stage seems to be defaulting on the mortgage, but I'm seriously concerned about my future. what will happen to me...how long will my credit history be affected for? Will I be able to get another mortgage one day?

Any advise, or people that can share their own experience ??

Black Swan

MOD MOVING COMMENT:
This appears to be more of a personal banking/mortgage issue, rather than a larger Irish Economy discussion. Moved to Banking locked, so that mods may review it for appropriateness.

BuffyBot

/unlocked.

tinkerbell

OP, you need to get some legal advice here. Your ex is equally liable for the mortgage as you are.

AltAccount

Would you approach the bank and ask for a deal? They'll give most customers forbearance if they're approached with a reasonable proposal.

Will your partner cooperate in talking to the bank or have they washed their hands?

chris85

AltAccount wrote: »

Would you approach the bank and ask for a deal? They'll give most customers forbearance if they're approached with a reasonable proposal.

Will your partner cooperate in talking to the bank or have they washed their hands?

The bank will not wash their hands, they have two parties liable for the debt so would be happy enough.

Also I dont quite understand, you are living in the house and are paying the mortgage. You are meeting the payments although its hard, as it is for many others, so if you want to continue living there you must keep paying. This is if you still want to live there?

Your concern seems to be that the other party is not contributing and that is a pain but you are equally as liable for the debt and are fully responsible for the debt on your own as much as together.

hfallada

First you shouldnt fall behind on the repayments. Engage with the bank and explain your circumstances, that you are the only one paying the mortgage and with great difficulty. But it cant continue and would they consider a rate reduction or interest only while you deal with your partner.

Your partner will have to acknowledge her responsibility sooner or later because you default it impacts on her credit rating too. But most importantly the bank should try and be flexible. Remember if your broke and they repossess the house, they arent going to get that 80k off you and make that clear to them. Ill default and declare bankruptcy in the UK and its tough luck for them

tomtucker81

Just thinking, would renting a room or two help? I'm fairly sure the bank will suggest/look for you to do that.
The bank will want their money, they won't care if its all coming from you or not.
I know a girl in similar situation, split up and couldn't keep up the full repayment.
She explained this and was told that while its in both names, they don't care who pays once they get it. She obviously ended up defaulting, but paid as much as she could.
So she's now got bad credit history, while never having a chance to pay off her mortgage.
The only silver lining was the fella that split also has this credit history to his name.

anyway....go in and talk to the bank. They are very used to these circumstances now.

wmpdd3

OP are you paying the entire repayment or just your half?

murphaph

OP: The biggest problem here is that you are paying somebody else's half of a mortgage. Your ex has washed her hands of the property but she still legally owns it with you and after you've gone and paid it all off she or her heirs would be legally entitled to 50% of the value upon sale. You really don't want that. It's a very difficult situation you are in (not because of the negative equity, that will go away eventually) but because your ex has done a runner.

Honestly, if I were in your shoes I'd be trying to make her see sense first and foremost. I'd impress upon her that I can't keep paying the mortgage alone and that I am going to default and that both our credit histories will be tarnished. If she doesn't care, then you really have limited options and defaulting is probably up there.

You can't make her pay at the end of the day (even suing her is unlikely to result in her paying, even if you won) so you need to decide if you are prepared to pay her share of the mortgage (that is what you are doing) and risk her (OR HER HEIRS!) claiming their share when it's all paid off. Her heirs will likely never know/care that you made the mortgage payments once they hear that they are co-owners of the property. They'll just want their money.

If you can afford it then get some legal advice. Maybe it's possible for her to "promise" you the property contractually (for paying her share of the mortgage) or something like that, but I wouldn't bank on it.